Nokia closed trading with its stock (NOK) on the New York Stock Exchange last Friday with shares going up nearly 4.5%. The surge of 4.5% added almost $1.5 billion to Nokia’s market capitalization of, now, $34.3 billion.
Usually stocks of a company go up when the company announces positive news or a major “positive” event happens in the sector the company operates in. Last week, or more precisely on Thursday, two events that happened could had triggered the rise of Nokia’s stock price. The first could be Nokia’s announcement that the company entered into a strategic partnership with Amazon Web Services. Amazon and Nokia will cooperate on 5G, and work together to faster bring service providers to the cloud. Amazon WS is the biggest cloud provider on the planet, so it’s quite significant to have a strategic partner like that.
Other news that could have affected the stock price is Nokia’s long term rival Ericsson. Last week, Ericsson posted its Q3 2017 financial report, after which the stock price of Ericsson (ERIC) went up nearly 10%. The report, even though it shows $588.7 million in net loss, also shows signs of recovery . Nokia’s rival doing better means the market is recoverying, which means Nokia will too do better.
How good was Nokia’s last quarter (Q3 2017), we will find out on October 26th, when the financial report is scheduled to be made public.